This research investigates how immigrant entrepreneurs in the falafel business in Malmö position themselves in relation to the host society. Interviews with five immigrant entrepreneurs in the falafel trade were conducted to explore their life stories, business endeavours and their relations with the host society. The data was then analysed to establish the degree to which they feel embedded in different arenas of the host society and their society of origin. This study confirms the disadvantageous position of immigrants in Swedish society, though demonstrates the various strategies they utilise to improve their situation through entrepreneurship. The study, the first of its kind in Malmö, is important in the context of rising xenophobia in Sweden and segregation in the city.